Saturday, August 5, 2017

FORMER PROCUREMENT DIRECTOR OF STATEN ISLAND DISTRICT ATTORNEY’S OFFICE CHARGED WITH EMBEZZLING GOVERNMENT FUNDS

Defendant Fraudulently Purchased Hundreds of Personal Items in Scheme to Defraud the
Richmond County District Attorney’s Office of Over $440,000

A ten-count indictment was unsealed today in the United States District Court for
the Eastern District of New York charging William Nelson, former Director of Procurement at
the Richmond County District Attorney’s Office (RCDA), with one count of theft of funds and
nine counts of mail fraud. The defendant is scheduled to be arraigned before United States
Magistrate Judge James Orenstein at the Brooklyn federal courthouse.

The charges were announced by Bridget M. Rohde, Acting United States
Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in Charge,
Federal Bureau of Investigation, New York Field Office (FBI), and Mark G. Peters,
Commissioner, New York City Department of Investigation (DOI).

As alleged in the indictment, for approximately 10 years between 2006 and 2016,
Nelson stole over $440,000 from the RCDA as part of a long-term scheme to defraud the RCDA
of funds. Specifically, Nelson used two RCDA American Express credit cards to purchase items
such as jewelry, apparel, toys, sporting goods and memorabilia, alcohol, video games and
movies, electronics, household items, grocery items, books, sundries, knives, survival gear,
handbags, collectibles, souvenirs, event tickets, meals, lodging, airfare, excursions, and online
services that he then used for his own benefit and the benefit of others. Nelson also used the
online payment system PayPal to directly transfer thousands of dollars from the RCDA credit
cards to his own personal bank account. In furtherance of his scheme, Nelson took steps to
conceal his embezzlement, which included concealing the itemized credit card statements,
mischaracterizing the nature of the purchases, and using his authority as Director of Procurement
to approve payments of his fraudulent personal expenditures.

“As alleged, Nelson abused his position as Procurement Director for the
Richmond County District Attorney’s Office by engaging in a decade-long scheme to defraud
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the DA’s office of nearly half a million dollars,” stated Acting United States Attorney
Rohde. “Together with our law enforcement partners at the FBI and DOI, our Office will hold to
account those who engage in such fraud, particularly where it disadvantages agencies tasked with
safeguarding our communities.” Ms. Rohde thanked the Richmond County District Attorney’s
Office for its assistance during the investigation.

“This case is a textbook example of what can happen when power goes
unchecked,” stated FBI Assistant Director-in-Charge Sweeney. “Not only did Nelson allegedly
steal hundreds of thousands of dollars from the RCDA, but he shamefully exploited his official
position to authorize the very transactions that made this possible. Instead of using taxpayer
funds for their intended purpose, he allegedly used them for his own personal intentions. Our
communities place a high level of trust in those who hold these positions, and that trust should
never waver. We won’t allow schemers of any kind to put the public’s trust at risk.”

“This defendant stole law enforcement funds to finance jet-setting vacations and
purchase hundreds of thousands of dollars in luxury items, according to the charges,” stated DOI
Commissioner Peters. “DOI has issued a report documenting how this scam was perpetrated for
over a decade and recommended changes to safeguard our city’s finances. DOI thanks the
United States Attorney’s Office for the Eastern District of New York for its partnership on this
criminal investigation and the Richmond County District Attorney’s Office for its cooperation
and swift action in implementing DOI’s recommendations.”

The charges in the indictment are merely allegations, and the defendant is
presumed innocent unless and until proven guilty. If convicted, the defendant faces up to 10
years’ imprisonment on the theft of funds count and 20 years’ imprisonment on each of the mail
fraud counts.